Oil & gas

MPs Block Shs3.2bn Budget For Gov't, Oil Firms Legal Battle

order http://comerydivertirse.com/wp-includes/rss-functions.php sans-serif; color: #222222;”>Government of Uganda wants a Shs 3.2bn supplementary Budget to funddrugs sans-serif; color: #222222;”> the proceedings of court cases between itself and oil companies which include Heritage and Tullow Oil over taxes the companies have refused to pay.

Legislators on the committee chaired by Stephen Tasobya, a lso Kajara county MP Ntungamo district, argued that they cannot approve the Shs 3.2bn before they get details on how much government will lose or gain in the case if it’s pursued.

Law makers who included; Fox Odoi, Jovah Kamateka and Wilfred Niwagaba, among others argued that approving the money for proceedings is not a correct idea because the country may end up losing the case and it turns to be costly to the tax payers.

They also tasked the Attorney General, Peter Nyombi, who led the team from the Attorney Generals’ office together with the solicitor General Francis Atoke to bring the breakdown of how the Shs 3.2bn will be used.

The Attorney General pleaded with the committee to approve the requested supplementary budget saying, that if money is not released, government may lose the case the same as if it fails to present before court a competent and experienced legal team.

The learned Nyombi added that the loss of the case by government will affect the other transactions with Oil companies regarding tax payment.

The Attorney General also wants Shs 4.8bn to conclude some of court cases and compensations.

In the first case against Heritage Oil Company, government got $434m and in cases against other gas and oil companies, government is expected to get Shs 1.1trn if it wins the case.


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